Valkyrie Files for Ethereum Futures ETF with SEC, Expanding Investment Options

17. August 2023 Aus Von admin

• Valkyrie has applied to the SEC for an Ethereum [ETH] futures exchange-traded fund (ETF).
• The ETF will not directly invest in ETH, but will purchase a range of ETH futures contracts.
• Several major asset management players are also seeking approval for an Ether futures ETF.

Valkyrie Seeks SEC Approval For Ether Futures ETF

Asset management firm Valkyrie has filed an application with the U.S. Securities and Exchange Commission (SEC) for an Ethereum [ETH] futures exchange-traded fund (ETF). This expands investment options beyond Bitcoin [BTC] futures ETFs and allows investors to speculate on Ether’s future prices through the ETF.

Competition from Other Asset Management Players

Valkyrie joins prominent players like Grayscale, VanEck, and ProShares in pursuing Ether futures ETFs. Should the SEC approve their application, it would give investors access to these investments. Other asset management firms such as Bitwise, Volatility Shares, ProShares and Round Hill Capital have also sought approval for similar products.

Limits On Investment In Ether Futures Contracts

The submitted document outlines a specific limit on the ETF’s investment in Ether futures contracts, capping it at 8,000 contracts per month to adhere to position limits set by the Chicago Mercantile Exchange. Apart from investing in ETH futures contract, the remaining assets will be invested in cash or cash-like instruments or high-quality securities such as US government issued bills/notes/bonds/money market funds/corporate debt securities etc..

Usage Of ETH In Decentralized Ecosystem

Within its decentralized ecosystem users widely employ ETH – Ethereum’s native cryptocurrency – for conducting peer-to-peer transactions. Although some retailers both large and small accept ETH as payment, its use for commercial and retail transactions remains limited. Furthermore, it exhibits characteristics of a store of value though its price is volatile due to lack of regulations governing it yet .

Conclusion

If approved by SEC this would provide more opportunities for investors looking to diversify their portfolios with digital assets other than just Bitcoin . It would also make trading easier through regular exchanges instead of relying on unregulated crypto exchanges which may not guarantee security of funds held there .